One example is when a director seeks legal advice in
anticipation of a claim, which may or may not be made against the director in
the future. The D&O policy will only respond to cover legal costs once
the claim is made. A gap may also occur because the insurance policy
provides cover for a maximum sum whereas the indemnity offered by the company
is unlimited.
You might also be interested in The Chairman’s Red Blog, which is a supporting resource for the book.
Until next week.